TMC — Interim / Quarterly Report 2020

Nov 19, 2020

Taiwan Mask Corporation

Investor Conference

November 19, 2020

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Safe Harbor Statement

• The presentation provided forward-looking statements. These forward-looking statements may exceed judgment due to different conditions such as risks, uncertainties and assumptions, and actual results may differ materially from this statements. Due to the different conditions of these risks, uncertainties and assumptions, the forward-looking statements in this presentation may not occur as expected. Readers should not rely on forwardlooking statements.

• TAIWAN MASK CORPORATION has tried to ensure the information in this presentation is correct, without omissions and out of date. In addition, except for legal requirements, TMC has no obligation to respond new information or future events, proactively update the expression of the future prospects, and will not be responsible for any losses directly or indirectly caused in this presentation or actions taken by relying on information.

• Without the permission of the company cannot copy, modify, recompile, delete or transmit any content in this presentation, or use any content for commercial purposes.

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Agenda

Welcome TMC Summary

Sean Chen, Chairman

• Company at a Glance Lidon Chen, President

• Global Market Status

• TMC Business

 3Q20 Financial Results and Eve Yang, CFO 4Q20 Outlook

Q&A

All

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Company Overview

 Founded: 1988. IPO(2338): 1995.

 Paid-in capital: 2.5 B$NT

 Chairman: Sean Chen (2020 Nov).

• CEO: K.J. Wu

• Headquarter: HsinChu Science Industrial Park

• TMC employee: 260

• Capacity: 5k masks/M.

• Technology: >110nm, 90nm, 65nm

• Subsidiaries: MTC, YCC

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Fab Location

Fab 1/2

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Fab 3/5

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Fab 6

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• Fab 1,2, 3, 5 (HSIP)

• F6 (ZSIP) newly acquired

(13,286ping)

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TMC Group

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TMC Group
2.5 B$NT
Youe
TMC
Weida MTC
IC Design Mask Foundry services Chung
36% 100% Investment
100%
100%
Xsense Aptos
Sub-mount Package
40% 38%
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• Business

• Share %

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Mask Market

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Semiconductor Growth from HPC, IoT..

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Source from: MIC

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Global Mask Demand Increasing

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6.3%
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Source from: semi

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Mask Took 13% of Material Cost

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Source from: eBeam

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Mask grade >=130nm Delivered 296k pcs

To be !

53%

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Source from: eBeam

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TMC Business

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TMC Has Over 400 Customers

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Taiwan
Hsinchu
Taiwan: 360 USA: 10
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Taiwan: 360 Singapore: 18 China: 65 Malaysia: 4 Korea: 5 Japan: 3

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Business Strategy

• Strategic Customers • Step in 40nm, 28nm Outstanding Mature Mask Provider

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Continue Investing on Key Technology

	2020	2020	2020	2020	2020	2021	2021	2021	2021	2022	2022	2022	2022	2023	2023	2023	2023
	Q1	Q2	Q3		Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4
> 130 nm
>=65 nm
>= 40 nm
>= 28 nm

Development and qualification

Production

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TMC Value Proposition

• Dedicated and focused . > 32 years mask services

• Variety applications . i.e. IC, MEMS, WLCSP (5”,6”,7”,9”14”).

• On-time delivery from operation excellence

• Good quality . Good yield, process control and low defect density

• Sufficient capacity . > 5k masks / month and increasing

• Technology to support customer needs

• Competitive price offering: to support customer

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3Q20 Financial Results and 4Q20 Outlook

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Consolidated Statements of Comprehensive Income-QoQ

NT$ M		3Q20 1,151 -898 254 22.0% -112 -9.8% 141 12.3% 129 271 219 268 1.27		2Q20 1,099 -931 168 15.3% -101 -9.1% 67 6.1% 0 67 74 135 0.66	3Q19 1,008 -831 176 17.5% -132 -13.1% 44 4.4% 72 116 103 130 0.66	53 5% 33 4% 86 51% 12 12% 74 111% 129 57119% 203 302% 145 196% 133 99% 0.61 6.8ppts 6.2ppts QoQ	YoY
Operating Revenue							144 14%
Operating Costs							67 8%
Gross Profit							77 44%
Gross Margin Operating Expenses Operating Expenses Margin							-19 -15% 4.5ppts
Operating Profit							97 218%
Operating Margin							7.8ppts
Non-operating profits Income before Tax Net Income							57 80% 154 132%
							115 112%
Net Income to Shareholders of the Parent Company							138 106%
EPS(NT$)							0.61

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Consolidated Statements of Comprehensive Income

Operating Revenue Operating Costs Gross Profit Gross Margin Operating Expenses Operating Expenses Margin Operating Profit Operating Margin Non-operating profits Income before Tax Net Income Net Income to Shareholders of the Parent Company EPS(NT$) NT$ M		2020 1/1-9/30 3,356 -2,751 605 18.0% -348 -10.4% 257 7.7% -147 110 30 187 0.92		2019 1/1-9/30 2,446 -1,917 529 21.6% -388 -15.9% 141 5.8% 179 320 265 308 1.57	Amount % YoY
					910 37%
					835 44%
					76 14%
					-3.6ppts
					-40 -10%
					5.5ppts
					116 82%
					-326 -182% 1.9ppts
					-210 -66%
					-236 -89%
					-120 -39%
					-0.65

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Non-Operating Profits

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NT$M
Non-operating profits	1Q20	2Q20	3Q20	YT3Q20
Gain on disposal of investment	74	-6	2	70
Adjustments for change in value of investment	-352	34	263	-56
Others	1	-28	-136	-161
Total	-277	0	129	-147

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4Q20 Guidance

Based on our current business outlook

 Revenues

Expected to increase slightly and range between NT$1.20 billion and NT$1.27 billion.

 Gross Margins Expected to range between 22% and 25%.  Operating Margins Expected to range between 12% and 15%.

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Thank you !

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